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Consider the Following Probability Distribution for Stocks C and D

Question 77

Multiple Choice

Consider the following probability distribution for stocks C and D:  State ‾ Probability ‾ Return on Stock C‾ Return on Stock D‾10.307%−9%20.5011%14%30.20−16%26%\begin{array}{cccc}\underline{\text { State }} &\underline{ \text { Probability }} &\underline{ \text { Return on Stock C} } &\underline{ \text { Return on Stock D} } \\1 & 0.30 & 7 \% & -9 \% \\2 & 0.50 & 11 \% & 14 \% \\3 & 0.20 & -16 \% & 26 \%\end{array}

-The standard deviations of stocks C and D are _____ and _____,respectively.


A) 7.62%; 11.24%
B) 11.24%; 7.62%
C) 10.35%; 12.93%
D) 12.93%; 10.35%
E) none of the above

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